This presentation discusses the Lead User Strategy that systematizes and formalizes the process of innovation. 3M is an ever innovating company and Lead User method helped it come up with many breakthrough innovations. The Lead User Methodology was proposed by Eric von Hippel. Many companies have used the method to their benefit. While innovation is always a much sought after virtue, there is no definitive and sure-shot way to continuous innovation. Lead User Method is one way to make systematic the process of innovation. it significantly increases the chances of success. Lead Users are often those who use an improvised arrangement (Indian 'Jugaad') as there are no commercial dedicated solutions available, using existing products or technologies to solve their purpose in a way that was perhaps not initially intended of the product/technology. So lead users can be potential source of new product ideas.

1. INNOVATION MANAGEMENT &
NEW PRODUCT DEVELOPMENT

2. DEVELOPING NEW PRODUCTS: THE LEAD USER
STRATEGY
 Lead User:
 An early adopter of a
new product or
technology that is
expected to eventually
receive widespread use
 Lead users create a
solution (Indian ‘Jugaad’)
when there is no
commercial solution
available.

3. LEAD USER SYSTEM
The lead user process begins with formation of small cross-
disciplinary team from marketing and technical departments
One member serves as project leader. Team members
usually spend 12 to 15 hours per week on the project for its
duration.
This level of immersion fosters creative thought and sustains
the project’s momentum.
Lead user projects proceed through four phases.

4. LEAD USER METHODOLOGY
Phase1: Laying the foundation
• Identify the markets to target
• Determine the type and level of innovations desired by stakeholders
within the company
Phase 2: Determining the trends
• Seek opinion of experts & people who have a broad view of
emerging technologies and leading-edge applications in the area
being studied.

5. LEAD USER METHODOLOGY
Phase 3: Identifying lead users
• Initiate a networking process to identify and learn from
users at the leading edge of the target market and
related markets.
• Gather information that helps identify promising
innovations and ideas.
• Based on info collected, shape preliminary product
ideas
• Assess the business potential of the concepts and how
they fit with company interests.

6. PHASE 3: IDENTIFYING LEAD USERS
Finding Lead Users:
• Networking: Teams begin by explaining their problem to
individuals who have expertise on the subject.
• Then they ask for a referral to someone who has even more
relevant knowledge.
• Eventually, this successive networking (in related as well as
not-so related fields) leads to Lead Users at the front of the
target market

7. Lead Users can help redefine goals. Medical Imaging team's initial goal to create high
resolution images changed based on inputs from Lead Users. Their discovery of military
specialists' use of pattern recognition led them to a new goal: to find methods to
recognize medically significant patterns, whether by better image resolution or by other
means.
Team focused on Medical imaging identified need to detect smaller and smaller features-
like early stage tumors. They identified lead users in the field of Medical
radiology, semiconductor imaging, and pattern recognition
PHASE 3: IDENTIFYING LEAD USERS

8. LEAD USER METHODOLOGY
Phase 4: Developing the breakthrough
• Begin by hosting a work- shop with several lead users,
in-house marketing and technical people, and the lead
user team.
• Participants first work in small groups and then as a
whole to design final concepts that precisely fit the
company’s needs.
• After the workshop, the project team:
• further hones the concepts
• determines whether they fit the needs of target
market users
• eventually presents recommendation to senior
managers.

9. LEAD USER STRATEGY: THE SURGICAL
DRAPES EXAMPLE
The Problem:
• Surgical drapes sales was stagnating.
• Surgical drapes were too expensive for markets in
developing countries
• Surgical drapes were not providing fool-proof protection
against microbes; were not very effective in hotter conditions
Lead user team formed:
• 6 member cross functional team formed comprising
members from R&D, marketing & manufacturing
Initial Goal set: Find a better disposable surgical
drape

10. LEAD USER STRATEGY: THE SURGICAL DRAPES
EXAMPLE
Phase 1:
• The group learned more about cause and prevention of
infection by researching literature and interviewing
experts
• The group then held a workshop with
management, discussed all they had learned and set
parameters for acceptable type of breakthrough products
Phase 2:
• Focus on better understanding trends in infection control
• Team sent to India, Indonesia and Korea learned:
• Cheap antibiotics used by surgeons as substitute for
expensive drapes
• Recipe for crises as microbes develop resistance to
antibiotics over time
• Problem redefined: Find cheaper & effective infection
control method that does not depend on antibiotics

11. Phase 3:
• Networking to identify lead users
• Specialists in Veterinary Hospitals who managed to keep infection rates
very low despite difficult conditions
• Hollywood’s make-up artists who are experts in applying skin materials
that do not irritate & are easy to remove
Phase 4:
• Lead Users invited to a two-and-half day workshop to discuss various
ideas
• Participants discussed in small groups and then as a whole
• Three product line concepts emerged-
• Economy line of surgical drapes ( using existing 3M tech, not
breakthrough)
• Skin Doctor line of handheld devices that could lace anti-microbial
substances on patients’ skin and vacuum up blood/other liquids during
surgery
• Armor line of products that could be used in catheters and tubes
allowing 3M to enter a $2 bn market aimed at controlling of blood-
borne, urinary tract, respiratory infections
LEAD USER STRATEGY: THE SURGICAL DRAPES
EXAMPLE

12. CONCLUSION
Lead User Methodology formalizes and systematizes the process of
innovation.
It cannot guarantee 100% success, but then nothing can
Lead User strategy increases the chances of success
Lead User strategy can also reduce the time it takes for breakthrough
innovations (often the lead users have already developed some sort of
prototype) as companies do not have to start from scratch

13. THANK YOU